S&P Dow Jones Indices ("S&P DJI"), the world’s leading index provider, announced today that it has entered into a strategic collaboration with IHS Markit (NYSE: INFO), a leading global provider of benchmark indices for fixed income and credit markets.
S&P DJI will construct new multi-asset benchmarks using its own and IHS Markit's leading indices, including the S&P 500 and IHS Markit’s iBoxx bond indices and CDX and iTraxx credit indices.
The collaboration brings together two world-renowned brands with best-of-breed indexing capabilities. S&P DJI is the top independent equity index provider, offering a full array of indices that serve any investment strategy while IHS Markit's indices underpin some of the world’s most liquid fixed income financial products, including credit default swaps, total return swaps, exchange-traded funds, futures and options.
In the first phase of the collaboration, the two firms are working to design a liquid multi-asset allocation strategy, expanding S&P DJI's broader multi-asset index strategies globally. These indices help meet investors’ growing demand for portfolio allocation, diversification and risk management solutions especially in times of market volatility.
"We are excited to collaborate with IHS Markit in developing innovative multi-asset solutions vital to investors," said Jamie Farmer, Chief Commercial Officer, S&P Dow Jones Indices. "S&P DJI has had great success with indices such as the S&P MARC 5% ER Index and we are confident that together with IHS Markit, we will enable additional index solutions with just as much potential."
"During these volatile market conditions, we are proud to unite the capabilities of the most authoritative equity and fixed income index providers. Together, we will enable dynamic exposure to stocks and bonds, which is essential for annuity sponsors, pension funds, insurance companies and other financial institutions," said Sophia Dancygier, Head of Indices at IHS Markit. "Our collective range of indices and associated financial products are the liquidity cornerstone of the global investment community, and they continue to act as a solid gateway into equity and fixed income markets."